Business · Companies · 4 hrs ago
Samsung Securities cuts HL Mando rating and price target
Samsung Securities lowered its rating on South Korean auto-parts maker HL Mando from Buy to Hold and cut its price target from 65,000 won to 42,000 won.
HL Mando’s third-quarter sales were little changed from a year earlier, but operating profit fell 45.3% to 51.5 billion won.
Higher material and chip costs, along with increased spending on research and development, weighed on profits.
The company is investing in autonomous-driving control systems and robot actuators as carmakers shift toward software-focused vehicles.
Samsung Securities expects operating margins to remain below 4% for the time being, and says robot-actuator production at scale is not expected before 2028.
It says confirmed orders for autonomous-driving systems and robot actuators would help show whether HL Mando can earn a higher valuation.
Samsung Securities cut its rating on HL Mando from Buy to Hold and lowered its price target from 65,000 won to 42,000 won.
The brokerage expects weak profitability to continue because of higher material and semiconductor costs and research spending on next-generation technologies.
HL Mando reported third-quarter operating profit of 51.5 billion won, down 45.3% from a year earlier.
Its operating margin fell to 2.2%, while foreign-exchange losses contributed to a net loss attributable to controlling shareholders.
Samsung Securities said operating margins could remain below 4% for the time being.
- Who
- Samsung Securities lowered its rating and price target on HL Mando.
- What
- It changed its rating from Buy to Hold and cut its target price from 65,000 won to 42,000 won.
- When
- The article was published on November 1, 2026; it says the brokerage made its assessment on the 2nd.
- Where
- Not stated
- Why
- The brokerage cited rising material and semiconductor costs and increased research spending on autonomous-driving and other next-generation technologies.
This story does not have two clearly opposing sides.
HL Mando recorded revenue of 2.3205 trillion won and operating profit of 51.5 billion won, down 45.3% year on year.
Samsung Securities lowered its rating on HL Mando from Buy to Hold and its target price from 65,000 won to 42,000 won.
Samsung Securities expects full-scale mass production of robot actuators to begin no earlier than 2028.
- Rating
- Cut from Buy to Hold
- Price target
- Lowered from 65,000 won to 42,000 won
- Third-quarter revenue
- 2.3205 trillion won
- Third-quarter operating profit
- 51.5 billion won, down 45.3% year on year
- Third-quarter operating margin
- 2.2%
- Robot actuator mass production
- Expected from 2028 onward
What people are saying
Profitability is expected to remain weak for the time being as rising costs and investment to advance technology overlap.
To receive a premium compared with global peers, orders for autonomous-driving controllers and robot actuators need to be confirmed.